E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.Distribution;E-fulfillment;Literature Review;Online Retailing

E-commerce packaging as an embedded resource in three network settings

Packaging in e-commerce distribution receives attention from many perspectives, often in relation to sustainability and efficiency. This attention may concern the use of packaging material or the mismatch between parcel size and the products to be shipped. From a retailer’s or third-party logistics provider’s perspective, the attention includes costs related to packaging material and packing. Distribution has evolved over time and well-established settings of interconnected and embedded resources provide complexity in terms of opportunities for change. This paper investigates this embeddedness in terms of analysing e-commerce packaging as a resource interfacing with other resources such as products (including product packaging) in three network settings; the product development setting, the packing setting, and the sorting setting. The paper shows how the embeddedness of e-commerce packaging makes efforts to change a complicated matter due to the complex set of resource interdependencies. The study highlights why some network settings may be given more attention by firms involved in retail distribution, and others less. Furthermore, the study shows that although much attention is given to adjust the packing setting, it is important to understand the history of this setting and how adaptations of other settings, such as the product development and sorting setting, entail opportunities for change

Open Location Management in Automated Warehousing Systems

A warehouse needs to have sufficient open locations to be able to deal with the change of item inventory levels, but due to ongoing storage and retrieval processes, open locations usually spread over storage areas. Unfavorable positions of open locations negatively impact the average load retrieval times. This paper presents a new method to manage these open locations such that the average system travel time for processing a block of storage and retrieval jobs in an automated warehousing system is minimized. We introduce the effective storage area (ESA), a well-defined part of the locations closest to the depot; where only a part of the open locations –the effective open locations-, together with all the products, are stored. We determine the optimal number of effective open locations and the ESA boundary minimizing the average travel time. Using the ESA policy, the travel time of a pair of storage and retrieval jobs can be reduced by more than 10% on average. Its performance depends hardly on the number or the sequence of retrievals. In fact, in case of only one retrieval, applying the policy leads already to beneficial results. Application is also easy; the ESA size can be changed dynamically during storage and retrieval operations. Keywords: Distribution science, warehousing; AS/RS; storage and retrieval; open locations

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering

To Wave Or Not To Wave? Order Release Policies for Warehouses with an Automated Sorter

Wave-based release policies are prevalent in warehouses with an automated sorter, and take different forms depending on how much waves overlap and whether the sorter is split for operating purposes. Waveless release is emerging as an alternative policy adopted by an increasing number of firms. While that new policy presents several advantages relative to waves, it also involves the possibility of gridlock at the sorter. In collaboration with a large US online retailer and using an extensive dataset of detailed flow information, we first develop a model with validated predictive accuracy for its warehouses operating under a waveless release policy. We then use that model to compute operational guidelines for dynamically controlling the main parameter of its waveless policy, with the goal of maximizing throughput while keeping the risk of gridlock under a specified threshold. Secondly, we leverage that model and dataset to perform through simulation a performance comparison of wave-based and waveless policies in this context. Our waveless policy yields larger or equal throughput than the best performing wave-based policy with a lower gridlock probability in all scenarios considered. Waveless release policies thus appear to merit very serious consideration by practitioners. Facilities using a non-overlapping wave policy should also consider overlapping waves or a split sorter policy

Waveless picking : managing the system and making the case for adoption and change

Thesis (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Global Operations Program at MIT, 2010.Cataloged from PDF version of thesis.Includes bibliographical references (p. 63-66).Wave-based picking systems have been used as the standard for warehouse order fulfillment for many years. Waveless picking has emerged in recent years as an alternative pick scheduling system, with proponents touting the productivity and throughput gains within such a system. This paper analyzes in more depth the differences between these two types of systems, and offers insight into the comparative advantages and disadvantages of each. While a select few pieces of literature perform some analyses of wave vs. waveless picking, this paper uses a case-study of a waveless picking system in an Amazon.com fulfillment center as a model for how to manage a waveless system once it has been adopted. Optimization methods for decreasing chute-dwell time and increasing throughput by utilizing tote prioritization are also performed using discrete-simulation modeling. The analysis concludes that managing waveless picking warehouse flow by controlling the allowable quantity of partially picked orders to match downstream chute capacity can lead to reduced control over cycle times and customer experience. Suggestions are also made on possible future research for how to optimally implement a cycle-time controlled system.by G. Todd Bishop.M.B.A.S.M

High volume conveyor sortation system analysis

The design and operation of a high volume conveyor sortation system are important due to its high cost, large footprint and critical role in the system. In this thesis, we study the characteristics of the conveyor sortation system from performance evaluation and design perspectives employing continuous modeling approaches. We present two continuous conveyor models (Delay and Stock Model and Batch on Conveyor Model) with different representation accuracy in a unified mathematical framework. Based on the Batch on Conveyor Model, we develop a fast fluid simulation methodology. We address the feasibility of implementing fluid simulation from modeling capabilities, algorithm design and simulation performance in terms of accuracy and simulation time. From a design perspective, we focus on rates determination and accumulation design in the accumulation and merge subsystem. The optimization problem is to find a minimum cost design that satisfies some predefined performance requirements under stochastic conditions. We first transform this stochastic programming problem into a deterministic nonlinear programming problem through sample path based optimization method. A gradient based method is adopted to solve the deterministic problem. Since there is no closed form for performance metric even for a deterministic input stream, we adopt continuous modeling to develop deterministic performance evaluation models and conduct sensitivity analysis on these models. We explore the prospects of using the two continuous conveyor models we presented.Ph.D.Committee Chair: Chen Zhou; Committee Member: Gunter Sharp; Committee Member: Leon F. McGinnis; Committee Member: Spiridon Reveliotis; Committee Member: Yorai Ward

Demand Management in E-Fulfillment

Internet retailers are in a unique position to adjust, in real-time, the product and service offering to the customer and to change the corresponding prices. Although this flexibility provides a vast potential for demand management to enhance profitability, standard practices and models to support the decision makers are lacking as of to date. This thesis aims to contribute to closing this gap by systematically investigating demand management approaches in e-fulfillment. We identify relevant novel planning issues through an in-depth case study at a Dutch e-grocer. We focus particularly on attended home delivery, where the Internet retailer applies delivery time slots to coordinate the reception of the purchased goods with the customer. The main levers to manage customer demand in such an environment are the offered time slots and the corresponding delivery fees. The Internet retailer may apply both of these options, slotting and pricing, at different moments in the sales process, either off-line prior to the actual order in-take or real-time as demand unfolds. The thesis presents several decision-support models for time slot management, both forecast-based and in real-time. The computational studies on real-life data demonstrate the viability and the merits of these methods. The results show that a more dynamic and differentiated demand management approach can lead to considerable cost savings and revenue gains